Mind Over Money

What’s Really Causing The Down Economy?

The Economy is based on how much money is being spent. So why is nobody spending?

Fear!

The TV is filled with stories that the world is coming to an end. That would make me want to save my money (and I do). If I don’t spend money then businesses don’t make money. If the businesses don’t make money then they don’t hire people. If people don’t have jobs then they don’t have money to spend. It’s a deadly cycle.

If either people stopped reading the news and watching TV we would be in a lot better shape because we wouldn’t know about the bad and would think everything is hunky dory. Ignorance is truly bliss and would help our country a lot, as far as the economy. But since people aren’t going to stop watching TV then we’ll have to think about something else.

Ninja had a good spin on the economy saying 91% of the U.S. does have a job. So how about the 91% of us that do have a job, help those that don’t by spending money. That would cause the business to make money, which would cause them to hire more people, which would cause those people to spend their money.

Sure you may be in debt up to your eyeballs, or your house may be underwater but that didn’t stop you from spending before. How did those credit cards get that much money on them? That’s right, you spent. So keep living your life like nothing has happened, spend your money and get payday loans. Eventually everything will pan out.

It’s a simple solution to a complex problem but it makes sense, doesn’t it? And then the TV will stop running stories about how the economy sucks. So lets take action and spend your money. Your country is counting on it!!!

What do you think about my solution?

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Comments (11)

  • Personal Finance Buzz…

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  • SNL had a great skit about this a while back – here’s a clip: http://www.youtube.com/watch?v=VL3KuaFvOSc

    I think your solution is just what the ol’ gov’t wants us to do so that our standard of living doesn’t lower…Heaven forbid it lowers.

    You make a good point…spending like it’ll fix everything isn’t the solution. That’s what got us into this mess in the first place!

    Reply
  • I think too many people I know are following that advice and I will end up having to bail them out someday! :)

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  • I don’t think it’s fear, at least not of the imaginary sort. It’s the lack of real jobs. The fact that 90% of the workforce is employed somewhere doesn’t remotely tell the story.

    A HUGE part of what drives the economy forward is the prospect of earning more money. Right now, that possibility is dim even among the employed.

    My two cents…we’ve reached a critical point where it’s time to develop new industries that will produce millions of jobs that pay living wages and are benefitted, otherwise we won’t see a meaningful and sustained improvement in the economy.

    Pumping money into the economy in the hopes that a sustained growth will be ignited is looking like chasing our tails.

    Reply
    • I agree with you on creating new industries. Innovation and change will help us out a lot.

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    • New industries with new jobs has to be the answer. In the meantime what should our young people train for? Software engineers and other engineers are currently in demand. Then there is always the health care industry. That is not going away. Those out of work now can retrain for many of the health care jobs. That won’t re-employ everyone though. And what about those in their 50s who were laid off & are now unemployable? If only it were so easy as to just spend more money!

      Reply
  • I suppose at some point we can reset everyone’s credit card balances to 0 and keep going? Unlimited prosperity for all! :P

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    • That would be pretty cool

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  • I think the market is just getting better and better mate!

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    • I do agree

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  • I’m not so sure about this mantra – check out studies by Dr Ryan Howell over at SFSU about the link between money and happiness. Our ability to spend (read: consume) as much as possible does not define the metrics of what makes any society good, functional.

    Reducing everything to measures of GDP ignores all the social, environmental and spiritual metrics that help measure our true quality of life.

    Reply

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